Posted by Nick Anderson on Rating 9.0 ?Outstanding
Excessive student loans have caused a domino effect for young people looking to buy a home or take out a loan for other desired items such as the purchase of a car. Many are burdened with long term debt and are now finding it more difficult to procure employment once they have graduated from college.
Many parents find their children returning home to live with them after college. They cannot afford to live elsewhere due to the high cost of rent. The added problem they must deal with is accepting low paying jobs. The parents are put under financial pressure as well since they are not able to downsize as they had planned. Many would like to sell their homes for a smaller one.
Student loans cannot be forgiven through bankruptcy. Additionally, students risk having their social security garnished for repayment. The government can use their social security to repay their student loans.
This problem is the cause for a slow down in economic growth in the US since fewer young people are able to invest or begin a business. The student loan problem influences the ability to buy products and services throughout the country. Social entrepreneurship is also seriously compromised.
A Forgiveness Bill has been introduced in response to the rising tuition costs. Both the needs of the students and the economy of the country are the main concerns for the creation of this bill. The bill proposes a lower interest rate, a repayment plan based on family income and possible cancellation of the loan depending on the circumstances of the student.
Students are encouraged to attend the more affordable state run schools and then to transfer to a more competitive school two or three years later. In this way they can make significant monetary savings for the more expensive school a few years later. The in-state school offers favorable tuition fees for students who are residents of that state. More people are looking to this option as a short term solution for the payment of their tuition.
For many decades it was assumed that once a young person graduated from college they would be almost guaranteed of procuring gainful employment at a competitive salary. Thirty-five years later the situation has changed dramatically so that now many students are dropping out of college. The delinquency rates today are twice as high as the household debt.
Tuition hikes are larger than personal income growth. Salaries are not keeping up with the growing debt. There will also be far fewer home owners in the future and a growing number of renters. New loan programs need to be devised to adapt to the changes in the economy of the country.
Excessive student loans need to be addressed and solutions need to be found. When students are unable to pay their credit score will suffer. If there is default on more than one source it will be difficult for these people to ever be eligible for loans in the future. These consequences are serious and need to be addressed to avoid such a difficult situation from worsening.
When you are saddled with excessive student loans, you should think about looking for a job opportunity to address your issue. click this link for help with controlling and reducing your student debt.
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